Life Insurance Corporation of India (LICI) Q4 08/09 earnings summary

Executive summary

• FY ended Mar. 31, 2009: total premium income ₹157,186.55 crore, up 5%; life business operating surplus ₹929.12 crore and life fund ₹807,317.43 crore.

• Retained 60.79% of life-insurance premium and 70.52% of individual policies as industry first-year premiums fell to ₹69,284 crore from ₹78,552.70 crore.

Financial highlights

• Total income ₹217,274.36 crore; excluding the ₹16,993.71 crore adverse linked-fund fair-value change, net total income was ₹200,280.65 crore versus ₹206,362.98 crore.

• Individual first-year premium ₹13,791.81 crore, up 44.55%; renewal premium ₹77,577.13 crore versus ₹72,944.41 crore.

• Investment income ₹56,582.79 crore, up 17.16%; linked business premium ₹34,692.48 crore versus ₹47,344.31 crore.

• Total outgo ₹77,849.47 crore versus ₹80,176.14 crore; policyholder payments were ₹53,250.37 crore versus ₹57,623.41 crore.

• Shareholder-account profit before and after tax: ₹95,734.88 lakh; no tax provision was recorded in the summarized financial statements.

Outlook and guidance

• FY 2009-10 budget targets 43.50 million policies and total new-business premium of ₹480 billion, comprising ₹278.15 billion single and ₹201.85 billion non-single premiums.